Not upheld: policy cancellation and service handling; communication and timing of cancellation notice complaint against Aviva UK Digital Limited

Decision detail

Summary

Mrs A complained about Aviva's cancellation of her telematics motor insurance policy following repeated app misuse warnings. Aviva provided a replacement device and corrected settings in mid-October 2025, but issued a cancellation notice on 27 October effective 3 November. Mrs A contacted Aviva to query the cancellation but, receiving no swift reassurance, cancelled her policy on 29 October and obtained more expensive non-telematics cover elsewhere. The ombudsman found that telematics data supported Aviva's cancellation decision, but acknowledged that communication was poor and more time should have been allowed to monitor the corrected settings. The ombudsman upheld Aviva's £150 compensation offer as reasonable but declined to order refund of additional insurance costs, as Mrs A had chosen to cancel when reinstatement was offered.

The Ombudsman's reasoning

The ombudsman found that Aviva's cancellation process was triggered by legitimate telematics data showing the app was not running correctly, which was a valid ground under the policy terms. However, the ombudsman agreed that communication was poor and the timing of the cancellation notice could have been better. Aviva should have allowed more time to monitor the corrected settings after the replacement device was installed and settings amended before proceeding with cancellation. The ombudsman found that Mrs A's decision to cancel her policy and seek alternative cover was her own choice, and that Aviva's offer to reinstate the policy meant Aviva should not be liable for the additional cost of the replacement non-telematics policy.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website